03. Ibbl Establishment and Advancement Key Corporate Info

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ISLAMI BANK BANGLADESH LIMITED

01. Islami Banking Around The World:

1. In the light of Islamic teachings, in 1962 Pilgrims Savings

Corporation was established in Malaysia.

2. In 1963, Mitgamar Savings Bank was established in Mitgamar in

Egypt.

3. In 1969, a specialized Islami Bank named Tabung Haji wasestablished in Malaysia.

4. In 1970, the foreign ministers of OIC countries decided to

establish Islami Bank.

5. In 1971, Naser Social Bank was established in Cairo in Egypt.

6. In 1973, the finance ministers of OIC countries decided to

establish an International Islami Bank.

7. In 1974, the finance ministers of OIC countries signed IDBcharter.

8. In 1975, Islamic Development Bank (IDB) was established in

Jeddah, K.S.A.

9. In 1975, Dubai Islami Bank was established in U.A.E.

10.In 1977, Faisal Islamic Bank was established in Sudan.

11.In 1977, Kuwait Finance House was established in Kuwait.

12. In 1977, International Association of Islamic Banks (IAIB) was

incorporated in K.S.A.

13.In 1978, Jordan Islamic Bank for Finance & Investment was

established in Jordan.

14.In 1978, Pakistan declared Islamization of Banking System of the

country.1

Md. ShafiqurRahmanExecutive Vice President& InchargeIslami Bank Bangladesh Ltd.Local Office,Foreign Exchange Department.


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02. History & Milestone of IBBL:

In 1974 Bangladesh signed the charter of Islamic Development

Bank (IDB)In 1980 Bangladesh Bank made study on the operations of Islamic

Banks abroad

In 1982 Islamic Development Bank came forward to participate a

joint venture Islamic Bank in Bangladesh.

In 1983 Islami Bank Bangladesh Limited came into being the first

Islamic Bank in the Southeast Asia.

In 1985 IPO & Listing in Dhaka Stock Exchange

In 1991 Opening of 50 th Branch





03. Other Islami Banks in Bangladesh:

In 1987 Al Baraka Bank Bangladesh Ltd, Now ICB Islamic Bank.

In 1995 Al Arafah Islami Bank Limited.

In 1995 Social Islami Bank Limited.

In 1997 Foysal Islamic Bank, Later Shamil Bank of Bahrain.

In 2001 Shahjalal Islami Bank Limited.In 2004 Export Import Bank of Bangladesh

In 2009 First Security Islami Bank Limited.

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04. Conventional Banks having Islamic Banking Branch:

Name of Bank Total No. of

Branch (2005)

No of Islami

Banking Br.

Start of Islami

BankingPrime Bank Ltd. 42 5 1995Dhaka Bank Ltd. 29 2 2003Southeast Bank Ltd. 31 5 2003The Premier Bank Ltd. 21 2 2003Jamuna Bank Ltd. 23 2 2003The City Bank Ltd. 77 1 2003AB Bank Ltd 68 1 2004HSBC 06 1 2004Standard Chartered 25 1 2004

Total 20

05. Mission of IBBL:

To establish Islami Banking through the introduction of a welfare

oriented banking system.To ensure equity and justice in the field of all economic activities.

To achieve balanced growth and equitable development through

diversified investment operations particularly in the priority sectors

and less developed areas of the country

To encourage socio-economic uplift and financial services to the

low income community particularly in the rural areas.

06. Vision of IBBL:

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To establish and maintain the modern banking techniques, to ensure

the soundness and development of the financial system based on

Islamic Principles.

To become the strong and efficient organization with highly motivated

professionals.

To encourage savings in the form of direct investment.

To encourage investment particularly in projects which are more

likely to lead to higher employment.

07. Definition of Islamic Bank

"An Islamic Bank is a financial institution whose statutes, rules and

procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operations" - OIC

Dr. Ziauddin Ahmed'- "Islamic Bank is essentially a normativeconcept and could be defined as conduct of "banking in consonancewith the ethos of the value system of Islam."

08. Objectives of Islamic Bank

a. All it's activities are conducted on interest-free system according toIslamic Shariah.

b. Investment is made through different modes permitted under Islamic Shariah.

c. Investment-income of the Bank is shared with the Mudarabadepositors according to a ratio to ensure a reasonably fair rate of return on their deposits.

d. Its aims are to introduce a welfare-oriented banking system andalso to establish equity and justice in the field of all economicactivities.

e. It extends Socio-economic and financial services to the poor,helpless and low-income group of the people for their economicupliftment particularly in the rural areas.

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f. It plays a vital role in human resource development and employmentgeneration particularly for the unemployed youths.

g. Its aim is to achieve: balanced growth & equitable development of the country through diversified investment operations particularly in

the priority sectors and in the less developed areas.

09. Sources of Funds of Islami Bank:

Capital / Share-holders equity:

(1) Core Capital :i) Paid up Capitalii) Share Premiumiii) Statutory Reserveiv) General Reservev) Dividend Equalization Accountvi) Retained Earnings

(2) Supplementary Capital :

i) General Provision on unclassified investmentii) Assets Revaluation Reserveiii) Exchange Equalization Accountiv) Mudaraba perpetual bond

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10. Modes of Deposit:

There are two different modes for collection of deposit byIslami Bank. These are:

(a) Al Wadeah

(b) Mudaraba

(a) Al-Wadeah : The word Al Wadeah has been derived fromthe Arabic word Wadyun which means to keep / to depositto give up, Leave off etc. In Islamic Banking, the principle of Al-Wadeah means, the Bank receives money from theclients for safe custody with the condition to return the

money on demand by the customer. Current accounts areopened under this principle. Depositors authorize the Bankto use the money at Banks risk. The customer is not entitledto receive any benefit from the Bank.

(b) Al-Mudarabah : The word Al-Mudarabah has been derivedform the Arabic word Darb' /Darbu which means tomovement to earn rahmat (Munafa) of Allah. Mudaraba is aform of partnership where one of the contracting partiescalled the Shahin-al-Maal or the Rabb-ul-Maal (thefinancier) provides a specified amount of capital and actslike a sleeping or a dormant partner while the other party,called the Mudarib (entrepreneur) provides theentrepreneurship and management for currying on anyventure, trade, industry or service with the objectives of

earni8ng profits. The Mudarib is in the nature of a trustee aswell as an agent of the business. Profit is distributed as per preagreed ratio while the loss is entirely borne by theShahib-al-Mall.

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Different Mudaraba Deposit Products

1. Mudaraba Savings Deposits (MSA)2. Mudaraba Special Notice Deposits (MSND)3. Mudaraba Term Deposits (MTD)4. Mudaraba Hajj Savings A/c (MHS)5 Mudaraba Savings Bond (MSB)6. Mudaraba Special Savings (MSS)7. Mudaraba Monthly Prft Dep Schemes(MMPDS)8. Mudaraba Muhor Savings A/C (MMS)9. Mudaraba Waqf Cash Deposit A/C (MWCD)

10. Mudaraba Foreign Currency Deposit (Savings) A/C (MFCD)

11. Investment Schemes of Islami Bank:

1. Rural Development Scheme2. Household Durable Scheme3. Investment Scheme for Doctors4. Transport Investment Scheme5 Car Investment Scheme6. Small Business investment Scheme7. Micro Industries Investment Scheme8. Agricultural Implements Investment Scheme9. Housing Investment Scheme

10. Real Estate investment Program

12. Core Banking Activities:

Deposit Collection

Industrial Finance

Real Estate Finance

Consumer Finance

SME Finance

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Treasury Operations

Brokerage Service

Expatriate Services

Import Finance

Export FinanceLetter of Credit

Bank Guarantee

Correspondent Banking

ATM / Card Services

13. Corporate & Key Business Information:(AMOUNT IN MILLION TAKA)

S Particulars 31.12.2007 31.12.20081. Paid up Capital 3801.60 4752.002. Total Capital (Equity) 14957.74 18572.083. Total Deposits 166325.29 200343.144. Total Investment 144920.61 180053.945. Investment Deposit Ratio 87.13% 89.87%

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Number of Banks & Financial : 270

Number of Nostro Account : 44

18. Corporate Social Responsibility:

6 (Six) modern Hospitals and 8 (Eight) Community Hospitals5 (Five) vocational Institutes named Islami Bank Institute of TechnologyIslami Bank Physiotherapy and Disabled Rehabilitation Centre

Distressed Women Rehabilitation Centre

Islami Bank International School & College

Islami Bank Medical College

Service Centre for Vulnerable PeopleMonorom Islami Bank Crafts & Fashions

Other Activities:

Scholarship to the poor and meritorious students

Grant for Medical Treatment

Grant for sustenance & marriage

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Documents

03. Ibbl Establishment and Advancement Key Corporate Info